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Alabuga SEZ Attracts RUB 13.9 bln in Investments in 2018

28.12.2018
In 2018, Alabuga SEZ attracted RUB 13.9 bln in investments and topped the rating of the most investment-attractive Russian SEZ. Eight new plants launched production in the special economic zone. Over the next five years Alabuga has the strategic aim to create 10 new federal platforms all around Russia.

As of now, 30 plants are operating and 57 residents are registered in Alabuga SEZ The total sum of investments made by SEZ residents totals RUB 120 bln. 50% of all Russian SEZ resident revenue and 39% of all invested funds are attributable to Alabuga SEZ. According to the report by the Ministry of Economic Development of the Russian Federation, Alabuga is one of the three special economic zones with 100% efficiency.

The revenue of Alabuga operating residents for 9 months of 2018 exceeded RUB 66.2 bln. The projected cumulative year-end revenue will likely exceed the RUB 77.8 bln earned in the previous year. During three quarters of 2018, the residents received RUB 8.68 bln of investments and created 273 new jobs. In 9 months of 2018, residents payed RUB 4.1 bln in taxes, and the total sum of tax payments for 12 years of SEZ operation totals RUB 26.1 bln.

OOO GEMONT METALL is among the new residents and plans to invest almost RUB 13.67 bln in the construction of a cold rolled sheet metal production complex. Russian Wax LLC is a polyethylene wax production project with plans to invest RUB 133 mln to create a production line in the Sinergy technology park.

In 2018, new production plants were opened by eight enterprises: OOO MMK-Dzhoshkunoz-Alabuga plant (production of steel blanks for automobile industry), OOO Danaflex-Alabuga (plant of the leading Russian manufacturer of flexible packaging materials), OOO SMIT (pipe making), OOO ST-Alabuga plant (production of vehicles on a Ford chassis), AO Rostoner project (production of toner cartridges), Russian Wax LLC and Allied Mineral Products Rus. The Rockwool plant was also the first in Russia to launch the production of Grodan substrates for growing plants.

At least three other residents plan to launch their plants in 2019: OOO Avgust-Alabuga, specialising in the production of plant protection products; OOO Transneft Synthesis, specialising in anti-turbulence additions, and OOO TN-Alabuga, specialising in the production of one-component polyurethane assembly foams.

In 2018, the Alabuga SEZ proved its leadership once again with top positions in Russian and international ratings of investment platforms. For the fourth time, Tatarstan's special economic zone earned a spot in the Global Free Zones of the Year special economic zone rating prepared by fDi Intelligence magazine (part of Financial Times Group). The implementation of a new Rockwool plant substrate manufacturing line earned Alabuga SEZ an award in the New Investment category.

In 2018, Alabuga SEZ also topped the rating of the most attractive special economic zones in Russia for investment prepared by the Association for the development of clusters and technology parks in Russia. Alabuga SEZ was determined as the best among 16 special economic zones in 13 regions.

The special economic zone continues the execution of a joint partnership project with TEDA, one of the largest special economic zones in China. Negotiations started in 2016, and in 2018, the joint project's business plan was presented to TEDA management during the visit of the President of Tatarstan Rustam Minnikhanov to China.

Last year, Alabuga SEZ also started to develop a project for the personnel training of manufacturing industry workers in Tatarstan. Analysis of theoretical and practical resident experience hones in on four professions most needed in local factories: mechatronics, automation of management systems, energetics, and chemistry. Thus, the special economic zone decided to implement educational programmes for these professional spheres on the basis of Yelabuga engineering college, where engineers from resident plants will teach within the framework of relevant courses. Students will get the opportunity to work with models of real equipment used in modern, international high-tech manufacturing facilities.

In 2018, the first hundred specialists graduated from Alabuga Corporate University. education project launched in 2016 to help find the most ambitious executives for the special economic zone. Over 2 thousand people from all over Russia apply each time a new class is formed. This year's group was the fourth to graduate from the university, and since the first class 70% of graduates have received employment offers. This April, the Agency for Strategic Initiatives named the Alabuga corporate university among the top three HR development projects in Russia.

In 2018, the Alabuga SEZ team launched the "100 executives" programme, as part of which SEZ experts visited 23 Russian universities and held intensive courses for soft skill and leadership skill enhancement for students. Participants with the highest results were offered internships in the special economic zone.

In 2018, Alabuga SEZ announced its strategic goal to create new investment platforms in other regions of Russia and share its positive Tatarstan investment attraction experiences with others. In 3 years Alabuga plans to create 3 new platforms in Tatarstan, and in 5 years 10 new platforms all around Russia. 'Competition for investors is becoming tougher in Russia and the global market alike. High demands from investors require constant development and increases in efficiency. Alabuga offers world-class infrastructure and has a unique background working with large investment projects. Our main goal is sharing this experience far and wide,' says Director General of Alabuga SEZ Timur Shagivaleev.

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